In the Curves International 2010 Franchise Disclosure Document (FDD) issued March 25, 2010, 28 civil actions were disclosed in the Item 3 Litigation section.
5 are individual or group actions by Curves franchisee owners alleging such things as breach of contract, fraudulent inducement, negligent misrepresentation, etc. on the part of Curves International.
7 are lawsuits by Curves members allegedly injured on pieces of equipment or on premises.
5 are by vendors, employees and a competitor (Weight Watchers) against Curves International.
11 are lawsuits by Curves International against its franchisees, most seeking recovery of damages (non-payment of fees) resulting from their alleged “abandonment of the franchise.”
Curves International, Inc. Settlements With Franchisees Who Sued
The mandatory disclosures of litigation in the Curves FDD make public the following “confidential settlements” between Curves International, Inc. and the Curves franchisees who sued them. For more information on the allegations and court venues, consult the CURVES International 2010 Franchise Disclosure Document (FDD).
Healthy Directions Northwest, Inc. v. Curves International, Inc., George Blaine and Sandy Blaine d/b/a Curves.
“…A confidential settlement between the parties and this case was dismissed by the court on 4/9/09 in which We [Curves International] paid $5,000 in full and complete settlement of all claims.”
Linda G. Woodward, Susan Taylor Harper, Lydia S. Romero, Jeffrey P. Kalbfleisch and Stephanie Kalbfleisch v. Curves International, Inc.
“…We paid $3,500 in settlement of all claims filed by said plaintiff [Woodward], and her claims were dismissed from this lawsuit by the Court on 2/13/08. Confidential settlements have been reached between the 4 remaining plaintiffs and Us… execution of the settlement documents and dismissal motions are pending.”
Kareen Lay v. Curves International, Inc.
“On 3/20/09, an action was filed against Us by a franchisee seeking recovery of damages in an undisclosed amount for alleged breach of the franchise agreement by an alleged failure to mediate. As of the date of this Disclosure Document, this case is still pending.”
Kinnie Gibson v. Curves international, Inc.
“On March 9, 2010, an action was filed against Us by a former master franchisee in Germany… regarding the franchise relationship. As of the date of this Disclosure Document, the case is still pending.
Momentum Sales & Services, Inc., et al. v. Curves International, Inc. and Howard Gary Heavin.
This is the largest group action lawsuit by franchisees against Curves International, Inc.
17 plaintiffs’ claims were dismissed with NO payments being made by Curves International, Inc.
29 confidential cash settlements totalling $204,400 were made by Curves International, Inc. resulting in their claims being dismissed. The average settlement amount was $8,290.
As of the date of the FDD, the case is still pending with 81 plaintiff groups remaining.
| Date Settled | Plaintiffs | Amount CII Paid |
| 2/7/08 | Lori Brickel & Jill Kalatucka | 3,000 |
| 2/7/08 | Jo-Ann Garvey | 10,000 |
| 4/29/08 | Jan Santagate | 20,000 |
| 5/14/08 | Diana L. Dahlin, Peggy Matson | 20,000 |
| 1/13/08 | Catherine Maser | 20,000 |
| 3/20/08 | Angeline Bednar | 17,500 |
| 5/14/08 | Carol L. Rooney, Jaclyn A. Rooney | 7,500 |
| 5/14/08 | Jamey Kirchner | 25,000 |
| 6/11/08 | Sheree Corde Carter | 5,500 |
| 5/8/08 | Denise Alabach, Diane Schneck | 5,000 |
| 6/27/08 | Judith Haddad, Tringo, Inc. | 10,000 |
| 5/13/08 | Sandra L. David | 3,500 |
| 3/11/09 | Karen Wilson | 7,900 |
| 3/11/09 | Pauline Snowberger | 8,000 |
| 5/19/09 | Gloriously Fit Inc., Janet & Russell McTier | 1,000 |
| 6/24/09 | Akute LLC, Royce Makil, Gracy James | 6,000 |
| 6/24/09 | Doobly Ventures LLC, Doobly Ventures III LLC, Deborah B. Myers | 7,000 |
| 11/20/09 | Carol Riedel, Marie Fitness Inc. | 12,000 |
| 1/8/10 | Betty J. Boyd | 2,500 |
| 2/2/10 | Geralin Inc., Linda Coughlin, Geraldine McClary | 4,500 |
| 2/24/10 | S&P Wolf Inc., Peter & Sarah Wolf | 3,000 |
| 3/5/10* | Karen Costner Leighton | 24,000 |
| 3/5/10* | Melinda Rowe | 2,500 |
| 3/5/10* | Keeno Lampman | 5,000 |
| 3/5/10* | Fitness etc. LLC, Yvonne Samuels | 2,500 |
| 3/5/10* | RM&R Fitness Inc., Mary Stark | 2,000 |
| 3/5/10* | Elaine & Robert Taylor | 2,000 |
| 3/5/10* | Sandy Harrington | 1,500 |
| 3/12/10* | Treetoad LLC, Teresa Soderberg | 2,000 |
| TOTAL | $240,400 | |
| Average | $8,290 | |
| * Agreement date. Settlement pending. | ||
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A mere pittance paid by Curves.
Perhaps the settlement amount is not the whole story. I am assuming that a part of the settlement is that CI will not seek "abandonment" fees and future royalties.
has anyone been able to keep their curves equipment to donate it to a non profit
(not a prison_after closing their territory at the end of the lease term?
Am closing on August 31st. Am a 24/7 club. Anyone out there interested in a class action over CI's policy against all 24/7 clubs?
[redacted]
Look, anyone looking to sue Curves again is a fool. I don't like Heavin either, but the lawyers are the only ones who win. Zarco took the franchisees for a long miserable ride in the first suit and he is the only winner. When are you people going to get it? This is a legal racquet.
I have been trying to move on with my life...but, .....I closed my club October 15th, 2010. Of course we received all of the threatening notices saying we owed them thousands of dollars. We have lost everything, and have struggled to do everything to stay afloat and not file bankrupcy, we have a huge amount of "unsecured debt" put on our credit report by Curves, that has pretty much ruined our credit at this point......now, yesterday my husband & I received a law suit, served in person by a civil server....summons and complaint from Curves International. They have filed a law suit against, me, my husband, and my LLC..all for the same amount...We are so confused, a while ago we received a copy of a letter from a collection agency addressed to Curves International telling them not to accept any paymnets made by us to Curves, that it is now in the collection companies hands.....so now Curves is sueing us??? I don't have money to pay them all of what they say I owe or even hire an atty.....the amount is nowhere near what our remaining royalties and ad fees would have been. Has anyone else gotten to this stage in their process? They are suing us here in MI, I really don't know what to do? Anyone have any experience or advice...would be appreciated...thanks, Still Haunted!
Still haunted, I am shocked that after all this time you are still in this curves nightmare! I talked with one attorney who in the past was successful in getting curves to greatly reduce the money they were demanding...infact its ridiculous for curves to charge the highest fees if your club was never paying that amount to begin with!! I know this attorney had success with the previous curves legal before the new takeover...I am waiting to hear what happens with the new team at curves...if curves has ruined your credit already, can you get free from this by claiming bankruptcy? Seems like if your credit is already ruined you may as well be free if possible. Im am so sorry for your loss and stress, there are so many in your shoes. I pray God helps everyone of us in this nightmare
Still Haunted,
We live in MI too and just got served papers last week. We closed in March of 2010 and basically have the same story as you. What has happened in your case so far? Feel free to contact me at [redacted].
Thanks. Carolyn
Still haunted and Carolyn, please post how this process is going so we can keep everyone informed, and support each other if possible. How much are they suing for, how long did you have on your contracts? There are many today who are not sure what to do, some have closed and are waiting to see what is going to happen, some are sitting on the fence and closing could be in their near future. We are all concerned and feel so alone in our struggle, we need each other. I am so sorry you are going through this, its heartbreaking to know it has continued this long. I pray that answers, solutions, and a way of deliverance for all of you, and hope your lives can be filled with peace soon. Take care
I own the curves in Carleton MI and apparently everyone thinks I am closed. The reason is I opted out of this new launch Curves Complete because I know my people will not pay an additional 12.95 a week for excercise, nutrition and motivation when I have been giving that to them all along. Plus the new computer system is not afforable for me. So CI took me out of the advertising completely, thats right you can't even pull me up yet i am still paying my AD dues? What the heck does this make any sense oh yeah and I am cleveland certified as they made me pay for that and get certified. so where is this BS really going.....Should I even bother contacting a lawyer? Help